Going beyond Micro-Payments to Nano-Payments towards a new digital economy.

August 24, 2016

Disruptive technology is always most effective when it can be applied to lucrative industries, and banking and finance is one that entrepreneurs have had their eye on for decades. Transaction costs have plummeted along with the cryptocurrency invention of distributed block chain ledgers, and the possibility of creating “Nano-payment” networks is opening the doors to thousands of new fractional payment models.

Nano-transactions are the key to unlocking efficiencies the world has not yet known. The tempo of business will continually ratchet up, new business models will begin to materialize, and the old ways of doing business will lose favor as the flow of money begins to short circuits them completely.

About Nano payments

Nano payments can be fractions of a cent. They are instantly settled and can be executed at high frequency. Imagine a couple of payments per second by a single user. This enables completely new ways of monetizing Web content and digital goods in general. In an increasingly digital society, Nano payments allow for new business models that existing payment technology cannot facilitate due to its fee structure and trust models

The synergistic relationship between Bitcoin and the emerging field of Internet of Nano Things (IoNT) could deliver new business solutions that will, for example, integrate frictionless frequent micropayments with Bitcoin and other digital currencies secure micropayment capabilities.

Need for Nano payment

  • As Internet commerce continues to increase year-on-year, more merchants are creating or expanding their Internet business. Currently, product portfolios sold via the Internet are limited to goods with a minimum value. However, alongside the sale of physical goods, the sale of virtual goods, like information, is also increasing dramatically. A trend that is being pushed by the introduction of devices like the iPad and Kindle.
  • A second use case for Nano payments is the trade of small virtual goods between private individuals, such as mobile apps for smartphones or virtual items within online games. `
  • A third usage is related to the increase in social networking. In general, membership of a social network is free, but providers may sell advanced services or additional functionality to members (e.g. Facebook’s internal payments system; Facebook credits). In the future, it will be possible for members to trade with each

Application of Nano payments

Since Nano payments are designed to fulfill the requirements of anonymity and low-cost transaction processing for small values, the main business areas are within the social networking and gaming industries. In these areas, Nano payments can handle both person to-person and person-to-business transactions

  • Social Networking – The increasing number of users and the related success of networks led network platform owners to start thinking about new business opportunities to profit from their huge installations. In addition to the placement of advertisements, they started to offer premium services or the sales of special virtual goods. The transaction values involved are very small.
  • Media -The media sector already has extensive experience in selling content for small monetary amounts via the Internet. Example Apple iTunes business that allows customers to buy songs, movies, small applications, and games. The costs involved are less than one Euro. Currently, these Internet platforms use traditional, expensive payment methods where costs and risks are compensated by the media content provider.
  • Gaming – The last few years has seen a major movement within the gaming industry toward online gaming that provides the game provider with recurrent revenue and reduces the possibility of fraud. One example is Facebook’s FarmVille [8] that offers players the chance to purchase internal credits and spend them in the game. To allow users to purchase goods from other players, a possible business concept would require a payment system that could handle transactions of small amounts in a secure and cheap manner.
  • Charity and Donation – A new and not obvious business use for Nano payments is the area of charity and donations. There is huge potential for the Nano payment business here as it would allow social network users to solicit friends for donations for semiprivate purposes.

The future of payments is Frictionless! If you are keen to learn more about blockchain Nano payments potentials, Anglo African team will be pleased to provide you further details, contact us on 2331636 or by e-mail at contact@infosystems.mu

 

 

 

 

 

 

 

 

 

 

 

 

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